Water leaks in homes and businesses cause a tremendous amount of damage to structures and contents. Leaks generally occur from a burst water pipe or leaking faucets or water using appliances. If an occupant is present and the leak is easily visible, water damage can often be prevented. However many leaks occur behind cabinets and in the walls so that even if an occupant is present, the leaks may not be discovered until a very substantial amount of damage has been caused. It is not uncommon for an undetected leak to literally create havoc and require major reconstruction to return the building to a usable state. Moreover, leaks induce the growth of hazardous mold.
A number of published articles relate to an increasing rate of claims against insurance companies for water damage claims and the resultant increase in cost and difficulty in obtaining insurance for homes and businesses in which water leakage claims have previously been made. See, e.g., in Money magazine, April 2003, the article by Lisa Gibbs and the web sites: http://www.iii.org/media/facts/statsbyissue/homeowners/ http://www.rmiia.com/Homeowners/water_damage.htm.